S. 97: Securing Semiconductor Supply Chains Act

This bill, titled the Securing Semiconductor Supply Chains Act, aims to enhance the U.S. semiconductor manufacturing sector by promoting foreign direct investment (FDI) in related production. It places specific responsibilities on the SelectUSA program, which is part of the Department of Commerce, to work closely with state-level economic development organizations. Here is a breakdown of the main components of the bill:

Purpose and Goals

The bill recognizes the critical role of semiconductors in both the U.S. economy and national security, especially after a shortage of these components was experienced during the COVID-19 pandemic. To address vulnerabilities in the semiconductor supply chain, the bill aims to:

• Increase domestic manufacturing capacity for semiconductors.
• Attract foreign direct investment to bolster the U.S. semiconductor industry.
• Collaborate with allied nations to prevent foreign adversaries from benefiting from U.S. investment efforts.

Actions Required

Under the bill, the Executive Director of SelectUSA is mandated to:

• Solicit feedback from state-level economic development organizations within 180 days of the bill's enactment.
• Review current efforts and barriers to attracting foreign direct investment in semiconductor production.
• Identify opportunities and resource gaps that could hinder efforts to increase such investments.
• Develop recommendations to enhance the effectiveness of SelectUSA in attracting investment.

Reporting and Coordination

After two years, SelectUSA is required to submit a report to Congress that includes:

• An overview of the feedback received from state organizations.
• A description of activities undertaken to increase foreign investment in semiconductor manufacturing.
• An assessment of potential strategies for securing the semiconductor supply chain.

The report will also address collaboration with federal agencies and state organizations in implementing strategies based on the feedback received.

Funding Considerations

The bill clarifies that no additional funds are being authorized for its implementation. Instead, SelectUSA must use existing resources available to carry out the required actions.

Conclusion of Findings

This legislation stems from the understanding that a stable and secure semiconductor supply chain is essential for the U.S. economy and national security, and it seeks to enhance this by fostering private investment and coordination at various governmental levels.

Relevant Companies

• INTC: Intel Corporation may see increased opportunities for expansion and investment if more funding flows into semiconductor manufacturing.
• TSM: Taiwan Semiconductor Manufacturing Company could be impacted as U.S. policies may create competitive pressures or incentives for onshoring manufacturing.
• SNX: TD SYNNEX could benefit from increased semiconductor manufacturing as they provide distribution and supply chain solutions.
• QCOM: Qualcomm might gain from a strengthened domestic production capacity which could support its supply chain better.